Audit committee reviews Fairfax County Office of Auditor General FY24 report; follow-ups remain, committee moves to closed session

The Fairfax County School Board Audit Committee on Jan. 13, 2025 received the Office of Auditor General (OAG) annual report for fiscal year 2024, reviewed open audit recommendations, and voted to move into a closed meeting to discuss personnel matters and consult legal counsel.

Esther Koh, auditor general for the Office of Auditor General, told the committee the office reports directly to the school board and audit committee and emphasized independence: "independence is, very critical for the success for a, internal audit function." Koh highlighted OAG performance measures, post-audit survey results and outreach work, including a peer review passed in 2023 with "no management comments."

The report included audit work and hotline activity. Danelle Moore, deputy auditor general, summarized audit results and staffing: "we completed 8 performance audits and 9 business process audits, for FY 'twenty 4." Moore described findings in several audits: two moderate findings and two observations in food and nutrition services; one high-risk finding, two moderate findings and one observation in facilities maintenance; one moderate finding and one observation in grants; and a routine local school activities fund review that reported exceptions at 92 of 202 sites. Moore also said two pilot continuous monitoring reviews of time and online travel identified no areas of concern.

The committee discussed the OAG fraud, waste and abuse hotline. Koh reported the office received 79 cases in FY24, up from 47 the prior period. Committee member Mr. Moon pressed for a threshold at which the committee should become concerned, saying, "as a member of audit committee . . . when should I start getting worried?" Koh replied that the raw number alone does not determine alarm and that committee attention should focus on the nature and patterns of allegations as well as other audit indicators. Another audit committee member commented that an increase in reports can reflect greater awareness and trust in reporting channels.

Monia, the staff presenter for audit follow-up, reported the status of recommendations as of Oct. 31, 2024: six audits had open recommendations. Specific follow-up items included two outstanding food and nutrition services recommendations (related to benchmarking/KPIs and an updated regulation) with an implementation date given by management as Jan. 31, 2025; four outstanding preventive-maintenance recommendations tied to the existing OFM maintenance software (management actions noted but resource-dependent); two grants-related recommendations closed and one grants-application training recommendation in process (an electronic local school activity fund grants report web form is in phase 2 testing); and several school-level business process recommendations that were closed following verification of reconciliations and approvals. The office said it had opened 21 new recommendations and closed 14 prior recommendations during FY24, leaving 14 outstanding as of the most recent reporting period mentioned in the presentation.

The committee approved the Nov. 18, 2024 Audit Committee meeting minutes by unanimous voice vote. Later, the committee unanimously approved a motion, moved by Mr. Moon and seconded by Ms. Lady, to go into a closed meeting on Jan. 13, 2025 to "discuss personnel matters pursuant to Section 2.2-3711(A)(1) of the Code of Virginia and to consult with legal counsel regarding specific matters requiring the provision of legal advice pursuant to Section 2.2-3711(A)(7) and (8)." The motion carried unanimously by the audit committee members present.

Why it matters: The OAG oversees internal controls and compliance across the county's schools; outstanding high- and moderate-risk findings and patterns in hotline reports can signal areas where the school system needs managerial or resourcing changes. Committee members emphasized they will monitor both the number and the substance of hotline reports and audit follow-up actions.

Votes at a glance: Approve minutes of Nov. 18, 2024 Audit Committee meeting — outcome: approved unanimously (counts not specified). Motion to enter closed meeting on Jan. 13, 2025 citing Code of Virginia Section 2.2-3711(A)(1),(7),(8) — moved by Mr. Moon, second by Ms. Lady; outcome: approved unanimously (counts not specified).

The audit office said its next formal follow-up reporting will be as of Jan. 31, 2025; the office also noted it will present follow-up results to the March Audit Committee meeting.